Posted by 101livescan on 10/29/12 8:49am
Msg #441001

Major Focus on NSA Professionalism in 2013

The Chase form is just the beginning. We're about to see more changes and requirements in our role as NSA in presenting loan documents to lenders' clients. I had an opportunity last week to speak with a Chase Loan Officer who is a major producer and he had interesting information about this industry and upcoming changes.

As you all know, for much of the past two years, the mortgage servicing industry has grappled with the fallout from the “robo-signing” crisis. The National Mortgage Settlement agreement imposed a series of sweeping reforms on five of the nation’s largest financial institutions that includes everything from the way servicing employees communicate with borrowers tohow documents are notarized. The Settlement has spawned a nationwide
effort to expand its reforms beyond the servicing-foreclosure side of the industry to every
facet of how mortgages are handled— from the minute the 1003 application is taken to when the last payment is made. Federal regulators have started looking closely at settlement and closing practices of third-party vendors such as title and closing services, and they are especially focusing on the Notary process, impacting risk management and compliance. In 2002, the Office of the Comptroller of the Currency enacted a set of rules covering
third party vendors working in the mortgage industry. However, during the boom years, few people applied the rules at the grassroots level. That is changing in the post-foreclosure crisis
environment, and NSAs can expect to deal with a variety of requirements.

A key element is training and certification—a lack of which was highlighted by the “robo-signing” crisis. Risk management executives at major financial institutions are exploring ways to create a centralized training and certification process for Signing Agents that would insure they are in compliance with federal standards and guidelines. Certification also will likely include periodic background checks and continuing education nationally.

Signing Agents also will be expected to know and follow rules for protecting sensitive
consumer information. When you hold a set of loan documents, you have a lot of
personal information. How is it stored? Is it protected? Can somebody get
access to your computer system?

NSAs eventually will need to address these issues and more in the new regulatory environment. There will be a huge focus on professionalism. In addition to the compliance and riskmanagement mandates, lenders are taking a hard look at their customer service (really, after this monthend madness, I find it hard to believe it's actually been implemented). However, banks are beginning to seek ways to improve the customer experience at the closing table as well.

Lenders realize that as they increasingly centralize their loan origination operations, the NSA may be the primary face of the bank with the borrower. That improved experience could start with something as simple as wearing business attire to closings and having professional sounding voicemail greetings. Lenders and closing services also recognize the need to improve communication with NSAs.

Consequently, face-to-face meetings with local loan officers may become a more common
occurrence. First impressions count. The impression NSAs make at the closing table will set the tone for how borrowers and the general public perceive the mortgage industry.

I wonder if this is cause for advent of the Chase form we're now filling out at the table itemizing every loan document that we affix our seal to in the package. ACCOUNTABILITY.

Isn't it interesting that on the very last day of closing, you're sitting with a borrower, he needs to speak with his LO, the client dials the LOs cell phone and there is no answer, he signs any way because he may have a three day right to cancel, or not. Supposedly, my Chase lender resource says that going forward, LOs will be at the signing table either personally or by telephone.

These new regulations are meant to result in a very high level of NSA knowledge and skill, as well as professionalism. Should be interesting. Still waiting to see what SOS changes will be for the California notary/NSA. More and more states are going to "beef" up their requirements for NSAs. Most states now do not require background checks of their notaries, and all they are required is to fill out an application and pay a small fee, and voila, they are a notary in two to four weeks. In CA it can take up to 12 weeks these days.

Reply by C. Rivera Chicago Notary Services on 10/29/12 9:12am
Msg #441008

this was very interesting...thx for the post...

...and it sounds promising in that we nsa's may start to gain a wee bit more respect in this market/industry, but that of course depends on the nsa, and their hiring party, etc.

However, I do not see LO's, sitting down at the table with BO being a "norm" anytime soon especially if they are independent.

When are these new regs coming out and is it just for Chase or by fed govt??

Reply by 101livescan on 10/29/12 9:23am
Msg #441010

Re: this was very interesting...thx for the post...

Have you noticed the decline in loan originations out of WF, Chase and BofA? All due to Settlement and being required to "upgrade and retrofit". Most of these loans come from mortgage brokers who sell them off to these lenders. Our WF home mortgage branch had a major exodus of their key LO talent who started their own mortgage broker offices here in town.

Interesting times...

Reply by jnew on 10/29/12 9:35am
Msg #441012

This is an example of the government responding to a crisis by looking in all the wrong place. The robosigning crisis was not a failure in expertise by the affected notaries. They were required by their employer to act in this fashion. They could not handle the extreme load of work any other way. This is not to excuse their failure to act responsibly, but it explains it. That problem had nothing to do with independent experienced notaries doing their jobs in a correct manner. This job has little to do with nuance and more to do with knowing the requirements and executing them properly. If there is any breakdown, I would think it would be caused by title companies and signing services hiring barely adequate notaries for bargain basement fees. Perhaps it would be beneficial to the industry if title companies were to require all of their notaries to have a high level of acumen and experience and then to offer them a fair charge for their services. It has been my experience that major banks put a lot of pressure on their vendors to reduce their fees in order to show the borrowers savings on their closing costs. I still maintain that the quality of work coming out of competent NSA's has nothing to do with the robosigning abuses for which all this new regulation wishes to cure.

Reply by Lee/AR on 10/29/12 9:40am
Msg #441014

Agree n/m

Reply by 101livescan on 10/29/12 9:51am
Msg #441017

It's called, "passing the buck", but the big boys have to fix blame somewhere, right.

I will, however, be interested to see how every state handles these new requirements.

Reply by Kenneth Pallante on 10/29/12 12:52pm
Msg #441055

I see that not much has changed since I last looked at Notary Rotary. I joined around 4 years ago. At that time, here in the Kansas City area, I received offers of $25 to travel 30 miles and perform a home loan closing. I told them to all pack sand. Most replied: "We will keep calling, there is someone who will do it so cheaply." Also at that time, all other notary services were paying even less than $25. I stopped looking to Notary Rotary for any business as the end users wanted bargain basement Notaries to perform some pretty sophisticated notarizations.

Now, I have logged back in after 4 years and find that nothing has changed. I am still surprised that very low amounts of money are being offered to us Notaries. These companies get what they pay for. I am not leaving my home for $25! BTW, this is not a knock on Notary Rotary - just describing the economy out there.

Reply by Lee/AR on 10/29/12 1:07pm
Msg #441058

I do not think I've EVER heard as low as $25 being offered! n/m

Reply by MW/VA on 10/29/12 2:20pm
Msg #441074

I think Brenda's msg. 436507 said a lot about all the

hype & fear that's spread about the notary role in any fraud. Business has been great & the sky is not falling.

Reply by Barb25 on 10/29/12 5:22pm
Msg #441148

Still trying to get past major producing Chase Loan Officer

So much inside information. Perhaps he could find out why the docs are always late.